BRANTFORD, ONTARIO -- (Marketwire) -- 12/31/11 -- Wescast Industries Inc. (TSX: WCS.A) ("Wescast") today noted that the previously-announced Memorandum of Understanding ("MOU") between Wescast and Sichuan Bohong Industry Co., Ltd. ("Bohong") of China regarding a possible acquisition of Wescast (the "Acquisition") provides that it will automatically terminate if Bohong has not obtained by December 30, 2011 (the "Expiration Date") a financing commitment letter from its proposed lender, the China Development Bank ("CDB"), that is acceptable to Wescast, acting reasonably, and that, since Bohong has not obtained such a financing commitment letter, the MOU has terminated automatically in accordance with its terms.
Wescast expects that its discussions with Bohong regarding a mutually-acceptable transaction will continue following this termination of the MOU.
Wescast intends to continue with its previously-announced strategic alternatives review. There is no defined timeline for this strategic review and there can be no assurance that Wescast will proceed with any transaction, that an agreement will be reached with any party, that a transaction will occur or that the review of strategic alternatives will result in any specific action. The entering into of any agreement involving Wescast will be subject to, among other things, the approval of Wescast's Board of Directors.
Wescast does not intend to comment further regarding its evaluation of strategic alternatives (including any discussions with Bohong), unless a specific transaction or process is concluded, or it otherwise deems further disclosure is appropriate or required.
Wescast Industries Inc. is the world's leading supplier of cast exhaust manifolds for passenger cars and light trucks. In addition to other products, Wescast designs, casts, machines and assembles exhaust system components, primarily exhaust manifolds, turbo charger housings and integrated turbomanifolds for automotive original equipment manufacturers ("OEMs") and Tier 1 customers for the car and light truck markets in North America, Europe, Asia, Africa, South America and Australia. Wescast employs approximately 2,000 people in 7 production facilities and 5 sales and design centres in Canada, Hungary, the United States, Germany, Japan and China. Wescast also has sales and technical design representation in the United Kingdom and France. Wescast is recognized worldwide for its quality products, innovative design solutions and highly committed workforce.
Learn more at www.wescast.com.
Forward Looking Statements
The contents of this news release contain statements which, to the extent that they are not recitations of historical fact, may constitute forward-looking statements based on certain assumptions. Forward-looking statements are provided for the purpose of providing information about management's current expectations and plans relating to the future. Persons reading this news release are cautioned that such information may not be appropriate for other purposes. Such forward-looking statements may include financial and other projections as well as statements regarding the expiration of the MOU in accordance with its terms, the continuation of discussions between Wescast and Bohong, Wescast's strategic alternatives review, Wescast's future plans, objectives or performance for the current period and subsequent periods and regarding the markets for Wescast's products and Wescast's strategic alternatives review. The words "may", "would", "could", "will", "likely", "expect", "anticipate", "estimate", "intend", "plan", "forecast", "project" and "believe" or other similar words and phrases are intended to identify forward-looking statements. Persons reading this news release are cautioned that such statements are only predictions, and that Wescast's actual future results or performance may be materially different.
This information is based upon certain material factors or assumptions that were applied in drawing a conclusion or making a forecast or projection as reflected in the forward-looking statements, including Wescast's understanding pursuant to discussions with Bohong and CDB, Wescast's perception of historical trends, current conditions, expected future developments as well as other factors Wescast believes are appropriate in the circumstances.
Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause actual results to differ materially from those expressed or implied by such forward-looking statements. These risks and uncertainties principally relate to the risks regarding the strategic alternatives review involving Wescast and any proposal or transaction, and the automotive industry and include, but are not limited to: Bohong or Wescast determining that it does not wish to continue discussions with each other, Wescast's Board of Directors not approving any proposal or transaction, Wescast and any third parties being unable to mutually agree on the terms and conditions of a possible transaction, Wescast's operating and/or financial performance, including the effect of new accounting standards on Wescast's reported financial results, fluctuations in interest rates, changes in consumer and business confidence levels, consumers' personal debt levels, vehicle prices, the extent and nature of purchasing or leasing incentive campaigns offered by automotive manufacturers, environmental emission regulations, fuel prices and availability, the continuation and extent of outsourcing by automotive manufacturers, changes in raw material and other input costs, Wescast's ability to continue to meet customer specifications relating to product performance, cost, quality, delivery and service, industry cyclicality or seasonality, trade and/or labour issues or disruptions, customer pricing pressures, pricing concessions and cost absorptions, actual levels of program production volumes by Wescast's customers compared to original expectations, including program cancellations or delays, price reduction pressures, dependence on certain engine programs and the market success and consumer acceptance of the vehicles into which such powertrain products are installed, Wescast's relationship with and dependence on certain customers, currency exposure, failures in implementing Wescast's strategy, technological developments by Wescast's competitors and customers, government and regulatory policies and changes in the competitive environment in which Wescast operates.
Wescast does not undertake any obligation to update or release any revisions to these forward-looking statements to reflect events or circumstances after the date of this news release or to reflect the occurrence of unanticipated events, except as required by law.
Wescast Industries Inc.
Edward G. Frackowiak
Chairman and CEO